Stocks fall for second day

The country's stock market continued to fall for a second consecutive day yesterday as investors cautiously waited on the sidelines to see what comes next for the record-high market index.

The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), fell 11 points, or 0.16 per cent, to 6,760.

The DS-30, the blue chip stock index, dropped 3 points to 2,423 on the day while the Shariah index of the premier bourse, DSES, edged down 4 points to 1,461.

"As the stock market indexes are at their highest level since inception in 2013, people are cautious now," said a stock broker.

Turnover, another important indicator of the market, fell 10 per cent to Tk 2,218 crore.

"Investors fear that the index may see corrections and so, they are not investing much and are waiting to see the next move," the broker said, adding that many institutional investors were being especially cautious and subsequently sold their shares.

At the DSE, 156 stocks advanced, 191 declined and 29 remained unchanged.

"The index fell due to the sale of institutional investors, and they were selling well performing stocks so the impact was seen on the index," a merchant banker said.

Many of them sold their shares as the index is at its highest level. This profit booking tendency is not a bad sign since it ultimately enhances the market's strength, he said.

Among all sectors, general insurance advanced the most, by 2.81 per cent, while banking stocks fell the most, by 1.19 per cent, according to data from UCB Stock Brokerage.

The South Bangla Agriculture & Commerce Bank topped the gainers' list, rising 10 per cent, followed by Purabi General Insurance Company, Karnaphuli Insurance Company, City General Insurance Company and Metro Spinning.

Stocks of Beximco were traded the most, worth Tk 155 crore, followed by LafargeHolcim Bangladesh, LankaBangla Finance, IFIC Bank, and City General Insurance Company.

The National Housing Finance and Investments shed the most, falling 4.87 per cent, followed by First Finance, Zeal Bangla Sugar Mills, Fareast Finance and Investment and Phoenix Finance First Mutual Fund.

The port city bourse also fell yesterday as the CASPI, the general index of Chittagong Stock Exchange, fell 39 points, or 0.19 per cent, to 19,707.

Among 321 stocks to undergo trade, 124 advanced, 171 dropped and 26 remained unchanged.